The wells are designed to evaluate the coal seam potential of the previously unexplored Burrum Coal Measures in the northern portion of the Burrum Syncline.
The company said Burrum-1 was drilled to a total depth of 438m and several coal seams were intersected and sampled for desorption analysis.
Eureka Petroleum, a wholly owned subsidiary of Energy Investments, is funding 100% of a two-stage CSM exploration program in return for a 90% working interest in the Burrum Syncline farm-in area.
Magellan said Stage 1 comprises the current two-well program and it has the right to back-in to retain up to a 50% participating interest in any development by matching Eureka’s prior expenditures.
Operator Magellan holds a 10% stake in Burrum-1, while Energy Investments owns 90%.
Meanwhile, in the Santos-operated Cooper Oil Project, Magellan reports that the Muthero-5 appraisal well in the Nockatunga Block, southwest Queensland has been cased and suspended as a future oil producer.
Magellan today said Muthero-5 in PL 51 spudded on February 23 and oil shows were recorded in the Murta Member and the Birkhead Formation.
It has now been cased and suspended as a future oil producer, it said.
The Muthero-6 appraisal well spudded on March 4 and surface casing was set at 218m.
Magellan said as of yesterday, the well was at a depth of 792m and drilling ahead to the programmed total depth of 1442m below the rotary table.
Santos holds a 61% stake and is operator of the Nockatunga program, while Magellan has 39%.